Aug 2009
Market Vectors TM Vietnam: A new equity benchmark to accurately track Vietnam
14.08.2009 10:00
14/08/09 10:00
Today 4asset-management launched the Market Vectors TM Vietnam Index (MVVNM). It is designed to give investors exposure to one of the most populous and most exciting emerging markets in South-East Asia.
The combination of a young and well-educated work force and a growing capital inflow from foreign investors and business gives Vietnam a high potential for the future.
MVVNM is reviewed every quarter and covers at least 90% of the target investable Vietnamese universe with at least 25 companies. It covers both local Vietnamese and Offshore companies which generate or are expected to generate at least 50% of their revenues in Vietnam or demonstrate a significant position in the Vietnamese market and are expected to grow. The ratio between Vietnamese and offshore companies will be re-set to a 70% - 30% weighting every quarter. To ensure the index portfolio diversity, individual companies are capped quarterly at maximum weights in the index – Vietnamese companies are capped at 8% and Offshore companies are capped at 4.5%.
As of August 11, the index consisted of 28 companies (14 Vietnamese companies and 14 Offshore companies) and provides a broad representation of Vietnam's equity market. The largest three companies in the index were Vietnam Dairy Product Company (11.5%), Hoa Phat Group (7.2%) and Sacombank (7.2%). The top three sectors are Financials (35.7%), Energy (18.6%) and Materials (12.9%).
The index performance reflects the high potential of Vietnam. Year-to-date the MVVNM (price index) performed + 51% and the VEMVVNM (Total Return index) performed +54%.
Market Vectors TM Vietnam Index is calculated and maintained by Standard & Poor’s® on behalf of 4asset-management GmbH. As of August 11, the index had a total market capitalisation of 104 billion USD and an average market capitalisation of 3.7 billion USD.
The MVVNM has been licensed to Van Eck Global as underlying for an Exchange Traded Fund (ETF) which is expected to start trading in August.
Details can be obtained here.
The "Market Vectors™" trademark has been licensed by Van Eck Associates Corporation (“Van Eck™”) to 4asset-management GmbH solely for use in connection with Market Vectors Vietnam Index, Market Vectors Indonesia Index, Market Vectors Brazil Small-Cap Index and Market Vectors Emerging Europe ex-Russia Index. Van Eck makes no representation or warranty, express or implied, nor accepts any responsibility, regarding the accuracy or completeness of this website or the indexes. VAN ECK AND ITS AFFILIATES SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS, AND MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE INDEXES. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL VAN ECK OR ANY OF ITS AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.
Today 4asset-management launched the Market Vectors TM Vietnam Index (MVVNM). It is designed to give investors exposure to one of the most populous and most exciting emerging markets in South-East Asia.
The combination of a young and well-educated work force and a growing capital inflow from foreign investors and business gives Vietnam a high potential for the future.
MVVNM is reviewed every quarter and covers at least 90% of the target investable Vietnamese universe with at least 25 companies. It covers both local Vietnamese and Offshore companies which generate or are expected to generate at least 50% of their revenues in Vietnam or demonstrate a significant position in the Vietnamese market and are expected to grow. The ratio between Vietnamese and offshore companies will be re-set to a 70% - 30% weighting every quarter. To ensure the index portfolio diversity, individual companies are capped quarterly at maximum weights in the index – Vietnamese companies are capped at 8% and Offshore companies are capped at 4.5%.
As of August 11, the index consisted of 28 companies (14 Vietnamese companies and 14 Offshore companies) and provides a broad representation of Vietnam's equity market. The largest three companies in the index were Vietnam Dairy Product Company (11.5%), Hoa Phat Group (7.2%) and Sacombank (7.2%). The top three sectors are Financials (35.7%), Energy (18.6%) and Materials (12.9%).
The index performance reflects the high potential of Vietnam. Year-to-date the MVVNM (price index) performed + 51% and the VEMVVNM (Total Return index) performed +54%.
Market Vectors TM Vietnam Index is calculated and maintained by Standard & Poor’s® on behalf of 4asset-management GmbH. As of August 11, the index had a total market capitalisation of 104 billion USD and an average market capitalisation of 3.7 billion USD.
The MVVNM has been licensed to Van Eck Global as underlying for an Exchange Traded Fund (ETF) which is expected to start trading in August.
Details can be obtained here.
The "Market Vectors™" trademark has been licensed by Van Eck Associates Corporation (“Van Eck™”) to 4asset-management GmbH solely for use in connection with Market Vectors Vietnam Index, Market Vectors Indonesia Index, Market Vectors Brazil Small-Cap Index and Market Vectors Emerging Europe ex-Russia Index. Van Eck makes no representation or warranty, express or implied, nor accepts any responsibility, regarding the accuracy or completeness of this website or the indexes. VAN ECK AND ITS AFFILIATES SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS, AND MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE INDEXES. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL VAN ECK OR ANY OF ITS AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.